The Resurrection of Code §385: Treasury Department Revises Regulations on Related-Party Debt

Special Edition: 2016 Year in Review    |    Read Series

By Stanley C. Ruchelman and Philip R. Hirschfeld

In 2016, the U.S. Treasury Department resurrected an area of the tax law that lay dormant for almost 40 years – the debt-equity regulations under Code §385. As we reminisce on the best of 2016, we offer detailed analysis of the new tax treatment adopted under Code §385. These comprehensive and detailed regulations address whether a debt instrument will be treated as true debt for U.S. income tax purposes or re-characterized, in whole or in part, as equity.   See more →

Articles in ths series:

• Related-Party Debt: Proposed Code §385 Regulations Raise Major New Hurdles
• Uproar Over Proposed §385 Regulations: Will Treasury Delay Adoption?
• §385 Regulations Adopted with Helpful Changes, but Significant Impact Remains